Fashion Retailer Takes Drastic Measures to Cut Costs

  • Jack Wills selling four stores to cut costs
  • Underlying loss of £11m in 2017
  • Stores in Brighton, Chester, Worcester, and Cheltenham affected
  • Seeking cheaper premises within locations
  • Property agent calls leases ‘very difficult’ to sell
  • BlueGem and Giorgio Girondi injected £20m emergency funding in 2018

Fashion retailer Jack Wills is selling four stores in an attempt to cut costs and make up for a store expansion that increased its locations by a quarter, despite making an underlying loss of £11m in 2017. The company plans to assign leases to new tenants on stores in Brighton, Chester, and Worcester and is seeking cheaper premises for a move elsewhere within the locations. Additionally, it will sell the lease on its Cheltenham store. A property agent told The Times that the leases would be ‘very difficult’ to get rid of, as other landlords offer better terms nearby. Since being taken over by private equity firm BlueGem in 2016, Jack Wills has seen its store numbers increase to 110.

Factuality Level: 7
Factuality Justification: The article provides accurate information about the retailer’s decision to sell four stores and their plans for new locations. It also mentions the underlying loss in 2017 and the involvement of private equity firm BlueGem and investor Giorgio Girondi. However, it lacks some details on the specific reasons behind the store expansion and the challenges faced by Jack Wills.
Noise Level: 4
Noise Justification: The article provides relevant information about the retailer’s decision to sell four stores due to financial losses but lacks in-depth analysis or exploration of long-term trends or consequences. It also does not offer actionable insights or new knowledge.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry
Financial Rating Justification: The article discusses the financial situation of Jack Wills, a retail company, and its decision to sell stores due to an underlying loss. It also mentions the involvement of private equity firm BlueGem and the impact on specific locations in the UK retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk